Pope & Talbot Announces Completion of Refinancing

Pope & Talbot, Inc. (NYSE:POP) today announced that it
entered into a credit agreement with Ableco Finance LLC and Wells
Fargo Financial Corporation Canada, relating to a $325 million senior
secured credit facility. The new credit facility consists of two term
loans for $250 million and a $75 million revolving credit facility all
due 2012.
   "We are very pleased to have concluded the financing with Ableco
and Wells Fargo Financial Corporation Canada," stated Michael
Flannery, Chairman and Chief Executive Officer. "The 6-year term and
excess availability provide the Company with needed financial and
operational flexibility."
   Substantially all of the proceeds from the $250 million term loans
were used to repay outstanding borrowings under the Company's existing
Canadian and U.S. revolving credit facilities, the Halsey pulp mill
lease financings, and the Company's receivable sales arrangement. The
$75 million revolving credit portion consists of $40 million of excess
liquidity and $35 million for letters of credit.
   The entire $325 million credit facility is secured by
substantially all of the assets of the Company and its subsidiaries.
   Pope & Talbot is a pulp and wood products company. The Company is
based in Portland, Oregon and trades on the New York Stock Exchange
under the symbol POP. Pope & Talbot was founded in 1849 and produces
pulp and softwood lumber in the U.S. and Canada. Markets for the
Company's products include: the U.S.; Europe; Canada; South America;
Japan; and other Pacific Rim countries. For more information on Pope &
Talbot, Inc., please check the website: www.poptal.com.
   Headquartered in Mississauga, Ontario, Wells Fargo Financial
Corporation Canada is a leading national provider of financial
products and services, including mortgage financing and personal loans
to Canadian consumers. Wells Fargo Financial offers retail financing
programs to national and local retailers through a network of more
than 3,400 merchants. With 165 stores in all 10 provinces and 2,700
team members across Canada, Wells Fargo Financial Corporation Canada,
a $4.50 billion (Cdn) corporation, is part of Wells Fargo & Company
(NYSE:WFC). More information about Wells Fargo Financial Corporation
Canada is available at www.wellsfargofinancial.ca.